Federal judge Mark Pittman today granted the Consumer Financial Protection Bureau a 30-day pause in the challenge brought by ABA and others to the CFPB’s rule on credit card late fees. Earlier this week, the CFPB asked the court for more time while the parties discuss a potential resolution to the case, which would still require approval by the judge.
“Counsel for the Bureau have begun discussing with Plaintiffs’ counsel potential ways to resolve this case,” the CFPB said in its filing. “Based on those conversations, the Bureau is optimistic that an agreement can be reached within 30 days, but the parties require additional time to see if an agreed resolution is feasible.”
In March 2024, ABA, the U.S. Chamber of Commerce and four other business groups challenged the late fee final rule on the grounds of the constitutionality of CFPB funding, the CARD Act, the Dodd-Frank Act, the Truth in Lending Act and the Administrative Procedure Act. Pittman issued a preliminary injunction, which remains in place, preventing the bureau from enforcing the final rule that reduces the safe harbor for credit card late fees to $8.
